REGULATION

Capital Markets Authority invites stakeholder opinion on draft commodity regulations

In Summary

• The Authority has developed the regulations in consultation with the National Taskforce on the establishment of a commodities exchange(s) in Kenya.

• The move is in line with the 10-year Capital Market Master Plan (CMMP) 2014-2023

Basic food items on display at at a super market. /FILE
Basic food items on display at at a super market. /FILE

Capital Markets Authority is inviting stakeholder comments on the Capital Markets Regulations, 2019 as part of the process of setting up Commodities Exchanges in Kenya.

This is in line with the 10-year Capital Market Master Plan (CMMP) 2014-2023.

The Authority has developed the regulations in consultation with the National Taskforce on the establishment of a commodities exchange(s) in Kenya.

 

The operationalization of commodities exchange(s) is part of the Northern Corridor Integration Projects (NCIP) initiatives and is expected to contribute to the Government’s Big Four Agenda aspiration of achieving food security in Kenya.

The regulations provide for the licensing of commodity exchanges, commodity brokers and approval of clearing houses.

The development of a regulatory framework for commodity exchanges will make the full range of agricultural and non-agricultural commodities markets competitive, improving efficiencies in the value chain and meeting international standards.

Once established, the eco-system of the commodities exchange(s) is anticipated to provide a transparent and efficient trading system to facilitate improved export competitiveness.

As there are several important stakeholders in the commodities eco-system, the Authority welcomes active public participation to ensure fit-for-purpose and inclusive Commodity Regulations which will be applicable to all commodities.